FBD chief in robust defence of premium hikes

The new chief at insurer FBD has made a trenchant defence of the industry’s huge premium rate hikes, but warned motor insurance costs could still rise by a further 9% next year if the judicial claims system is not overhauled.

CEO Fiona Muldoon said the troubled insurer was hopefully past its worst, saying that a 11% climb in its shares yesterday probably indicated some investors judged that the company was on its way to meeting its target to return to full-year profits in 2017.

FBD yesterday posted a pre-tax loss of €3.7m for the first six months, but analysts hailed the better-than-expected figures as showing the company was on the road to recovery.